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Elasticity Flashcards | StudBud

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Elasticity

11 terms·StudBud Administration·370 plays

An #Econ #quiz to introduce the basics of #elasticity

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Questions 11

Answers

1
Price elasticity of supply equation:
%ΔQD ÷ %Δ Price
%ΔQs ÷ %ΔPrice
%ΔQD Good A ÷ %Δ Price Good B
%Δ QD Good ÷ %Δ Income
2
Demand is quantity elastic when:
P↑ R=
P↑ R↓
P↓ R↑
P↑ R↑
3
The revenue formula:
Elasticity coefficient x Price
Price x Quantity
Quantity demanded x quantity supplied
Quantity x elasticity coefficient
4
Supply is often more elastic in:
the short run
the long run
5
Necessity goods are:
Inelastic
Elastic
6
If the elasticity coefficient is < 1, then demand is:
Price elastic
Unitary Elastic
Relatively inelastic
Relatively elastic
7
If the elasticity coefficient is > 1, then demand is:
Relatively elastic
Unitary elastic
Relatively inelastic
Price elastic
8
If income elasticity is positive, then the goods are
Normal
Complements
Substitutes
Inferior
9
Demand is price inelastic when:
P↑ R =
P↑ R↑
P↓ R↑
P↑ R↓
10
Demand is price elastic when:
P↑ R=
P↓ R↓
P↑ R↓
P↑ R↑
11
If the cross-price elasticity is negative, then the goods are
Complements
Inferior
Substitutes
Normal